This discussion clarifies the TDS rate on loans provided to a proprietorship firm for FY 2024-25. The general TDS rate on interest paid by a proprietor is 10%, provided the recipient has a valid PAN. Further clarification is sought regarding threshold limits on interest amounts and whether the rate differs for partnership firms.
08 April 2025
I have given loan to a proprietorship firm .what is tds rate for fy 2024-2025. Is there any threshold limit on interest amount? Is tds rate same for proprietorship firm or partnership firm? Please clarify?
09 April 2025
The TDS rate on interest paid by a proprietor, under Section 194A of the Income Tax Act, is generally 10% if the recipient provides a valid PAN.